ZAGREB, Croatia – Coffee prices in Croatian cafés have increased once again considering a cup of coffee with milk often exceeds 2 euros now. The rise in prices should come as no surprise, as coffee prices on the stock market reached their highest levels in fifty years. In December, the March contract for ICE Arabica gained 16.75 cents (+5.3%), closing at 330.25 cents, a new nominal high not seen since the second half of the 1970s.
One of the main reasons for the increase in prices is the climate challenge affecting production prospects in Brazil and Vietnam, combined with low stock levels, which have heightened volatility. Experts warn that this situation may persist for years, at least until global coffee stocks stabilize. Café owners explained that they had no choice but to raise prices.
According to Franz Letica, president of the Zagreb Café Owners’ Association in Croatia, the price of raw coffee beans ranges from 11.60 to 60 euros per kilogram, with an average of 25 euros, meaning the cost of the raw material for a single cup is approximately 0.192 euros. However, this doesn’t account for the additional costs involved in the final price of an espresso, such as equipment, maintenance or staff.
The Croatian Employers’ Association (HUP) has suggested eliminating the special coffee tax to help reduce costs and encourage consumption. The association argues that this tax is an anomaly in Europe, pointing to countries like Italy, where the removal of similar taxes has led to an increase in sales.
